Chapter 13 - Megan Matthews ACCT425 Chapter 13 D1 Describe...

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Megan Matthews ACCT425 November 24, 2011 Chapter 13 D1. Describe at least two financing process information needs for each of the following : a. Management b. Finance and Accounting c. Investors and Creditors Management needs information about financing process activities to allow assessment of overall business effectiveness and financial health. Ratios such as the current ratio and the debt to equity ratio allow management to assess short term and long-term liquidity. When cash shortages are identified, cash budget information may be used to determine whether short or long-term financing should be used to address the shortage, and whether debt or equity financing is most appropriate. Finance and accounting need information about financing process activities to make debt and equity financing decisions, and to prepare management reports and financial Information statements. They need to make debt and equity financing decisions that include the enterprises
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This note was uploaded on 12/17/2011 for the course ACCOUNTING 425 taught by Professor Stebbins during the Fall '11 term at Franklin.

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